TORONTO -- Cineplex Odeon Corp. and its U.S. subsidiary, Plitt Theaters Inc., have entered into a $180 million credit agreement with a syndicate of banks including Bank of Nova Scotia, Bank of New York, Royal Bank of Canada, and National Bank of Canada.
The agreement includes a $130 million reducing revolving-term credit facility, a $15 million operating facility to Cineplex Odeon, and a $35 million reducing revolving-term credit facility to Plitt.
With the new loans and by extending the maturity of long-term debt, the theater company is poised for new growth, said president Allen Karp. It applied the proceeds of a $200 million U.S. notes offering and the initial advance under the new bank credit facilities to repay existing bank debt of approximately $340 million, which would have matured in 1996.
